What if a load gets delayed until the following day?

I think you have a bad read here. If I had a way to convince shippers that they should pay more in accessorial charges, I would. I could even use that for my brokerage to make more money if I wanted to be shady and pay the industry standard while charging the customer more.

Unfortunately I can't convince shippers to pay my brokerage more in accessorial charges for essentially the same service that 1000s of other brokerage and asset based carriers provide, at least not on a consistent basis.

 

Just out of curiosity, Jimmy, would you be willing to post the industry standards for accessorial charges? I want to be fair and want to remain competitive. Sounds like the stamp needs an update for the current market.

 

I didn't mean to single you out, I was referring to brokers as a whole

 

Sure no problem.

The standards that I've seen working with hundreds of customers the last 8ish years (with a little bit of wiggle depending on the account).

Detention - $35 to $65 per hour
Layover - $250 per day
TONU - $150 - $250
Extra stop offs - $50 to $75 per stop, + out of route miles
Driver Assist - $75 - Driver Load or Unload - $150

There is definitely some variation that I've seen. Typically if a customer is more difficult to work with (strict PU and delivery appointments, rescheduling or late fees, strict RDDs, etc) the better they pay in accessorial charges.

 

That's darn reasonable...except I'll always have issue with the TONU and Layover...I think I'll make some changes today. I appreciate the conversation and willingness to share information and perspective.

 

Sure thing, glad I could help.

 

No such thing as, "industry standard". That's broker speak. Rates for the most part are determined regionally/locally by the carriers in their respective locales. Next these brokers will be claiming $1/mile is, "industry standard". I agree with you 100 percent on your stamped rate cons. It's the only way to be. There will always be cheaper trucks out there no need to compete with them. Not to mention, those detention rates guarantee we don't suffer massive revenue losses while their customers (or their customers) drag their feet getting us loaded/unloaded.

Having my accessorial rates in place make me money by keeping the truck moving. I routinely get pulled out of lines to be loaded/unloaded while other trucks sit and wait. They do this so they don't have to pay the accessorials. I think that's great. They don't have to pay and my equipment gets to keep moving. It's a win/win IMO. Thanks for sharing your policy/rates. I've included mine below as well. I always have it on a rate con, have them sign it as an addendum or they can also respond to an email agreeing to the terms. You have to be careful because their new game is to claim they don't have the power to add text to a rate con. No problem, your email works...just respond and agree! This has saved me from getting burned by Taimen once I filed a claim on their bond for the detention they tried to rip me off on.

"Detention Policy: Two free hours on origin and destination stops only before hourly rates begin. All other stops subject to hourly rate beginning at time of arrival. All hourly rates are billed in fifteen minute increments of $100 per hour. In/out times determined and invoiced by Carrier only. If Broker or their customer declines to contract Carrier for said detention charges after the allotted 2 free hours have passed, or otherwise exhausted a cancellation fee will incur.

Multi-stop Policy: All stops (except pick and drop) will incur an additional $150 per stop with no free time before hourly rates begin.

Cancellation (TONU) Policy: Any and all orders canceled (or significantly altered) by any party regardless of reason, will incur a cancellation fee of $250 if order is revoked (or significantly altered) after signed rate confirmation has been sent and/or received by Broker and/or Carrier.

Layover/Overnight and Storage Policy: Moves requiring freight to remain on carrier’s trailer and/or at carrier's storage facility due to terms not arranged prior to event will incur a Layover, Overnight and/or Storage fee of $250 per night. Storage rates are $250 for the first 24 hours and $15 per hour thereafter.

All accessorial charges are due regardless of whether or not Broker is paid from their customer. As per our Agreement, the Broker solely is responsible for all freight charges…not their customers."

 

Industry standard is absolutely a real thing, it applies to many industries besides the trucking industry. The definition is, "As the name implies, an industry standard is the average by which those in a particular field govern themselves." It doesn't mean that there aren't deviations outside those averages, but rather what typical numbers look like for that industry.

I don't think there is anything wrong with requesting or negotiating for higher accessorial fees, and I think setting expectations in advance is a good thing. I also wouldn't be surprised if those requests at times cost you loads, but those are your business decisions to make.

 

if those terms cost that carrier a load: taking that load without those terms was going to cost that carrier.

 

Thank you, Triple 6! It's good to know I'm not alone in holding standards. I hope that more O/O's will read this and adopt similar documentation to go with their ratecons. There's no malice intended in these policies. By stating our expectations up front, the brokers know they are working with a professional who will get their load delivered. These add-ons help the broker apply leverage to the shippers/receivers who would ordinarily lolly-gag at the docks. Like '6 said, it's a win-win when we are moving instead of sitting.